Configure broker commission

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Configure a broker commission

Overview

You must configure a Broker Commission for a loan contract before you can pay the commission to the broker.

Prerequisites

Before you go ahead with configuring a broker commission, ensure that you have overridden the standard page for adding a Contract Party to the contract so that you see the correct content on that page.

Note:

To know how to override the standard page, see the Override the standard page for adding a Contract Party section.

Steps

Step 1: Add a Commission Item

Step 2: Add a Commission Plan

Step 3: Associate the required Commission Item with the Commission Plan

Step 4: Add the Broker to the Contract and select the Commission Plan and set the Variance

This configures the Broker Commission for your loan contract.

Step 1: Add a Commission Item

  1. Log in to your Salesforce account.

  2. Go to Servicing Configuration > Broker Plans....

  3. Create a commission item to be associated with the Broker Plans by selecting Create Commission Item.

    Servicing Configuration displaying Broker Plans section

  4. Select Add Commission Item to add a new commission item.

    Commission Items section displaying various commission items followed by the Add Commission Item button.

    A new Add Commission Item section appears on the same page following the list of Commission Items already available, if available.

  5. In the Add Commission Item section, provide the values as explained in the following table, and then select Save:

    Note:

    Refer to the sample image following the table to understand better.

    FieldAction and Information
    Commission NameEnter a name to identify this commission.
    Commission DescriptionEnter details of this commission in this field.
    Commission type

    Select the type of commission that must be paid.

    The supported options are:

    • Top-up

    • Trail

    • Upfront

    Commission Method

    Select the method of calculating the commission amount.

    The supported options are:

    • Percentage: Select this value to calculate the commission as a percentage on the selected value in the following Commission On field.

    • Flat Amount: Select this value to calculate the commission as a flat amount specified.

    Commission On

    Select the type of amount on which the commission is to be calculated.

    The supported options are:

    • Loan Balance

    • Principal Remaining

    • Consolidated Balance

    Commission Value

    Enter an amount to pay as commission. This amount depends on the Commission Method selected. If the Commission Method selected is Percentage, then the Commission Value is considered as a percentage. Otherwise, it is a flat amount.

    Start Date

    Enter a date that is either today or a date that is less than today.

    The following image displays the details of the Add Commission Item section:

    Commission Items page displaying Add Commission Item section to fill the commission item details.

    This adds a Commission Item. You can now create a Commission Plan.

Step 2: Add a Commission Plan

  1. Go to Servicing Configuration> Broker Plans... > Commission Plans.

    Broker Plans section displaying Commission Plans menu.

  2. Select New.

  3. In the New Program page that appears, provide the values as described in the following table, and then select Save:

    Note:

    Refer to the sample image following the table to understand better.

    FieldAction and Information
    Program NameEnter a name that uniquely identifies this Commission Plan.
    End Date

    Enter a date that is greater than today.

    This is the end date of this plan after which the plan is not applicable.

    Start Date

    Enter a date from when you want this plan to be in effect.

    This is the start date from when this plan is applicable.

    The following image displays the details of the New Program page:

    This creates a Commission Plan. You can now associate the Commission Item created earlier with this Commission Plan.

Step 3: Associate the required Commission Item with the Commission Plan

  1. Once the Commission Plan is created as explained in the preceding steps, select the Related tab on that created Commission Plan.

  2. In the Related page, select New for Program Or Product Points Associations (0).

  3. In the New Program Or Product Points Association page, provide the details as explained in the following table, and then click Save:

    Note:

    Refer to the sample image following the table to understand better.

    FieldAction and Information
    NameEnter a name that uniquely identifies this association of Commission Plan and the Commission Item.
    ProgramThe system auto fills this field with the Commission Plan name that you had saved.
    CL ProductThis field is not necessary to be filled out.
    Points

    1. Enter the name of the Commission Item that you want to associate with this Commission Plan, and then select the Show All Results for.

      This opens the Points page with the Commission Item listed on it.

    2. Select the entered Commission Item name.

    AccountThis field is not necessary to be filled out.

    The following image displays the details of the association of the Commission Plan with the Commission Item

    4. Step 4: Add the broker to the contract and select the Commission Plan and Variance

  4. Go to CL Contracts and select the required CL Contract ID.

  5. On the CL Contracts page, scroll down and go to Parties > Contract Parties and select New Contract Party.

  6. In the Contract Party page that comes up, perform the actions as explained in the following table, and then select Save:

    Note:

    You can refer to the images following this table as an example to understand better.

    FieldAction and Information
    Select Party Type

    Select the type of party that you want to add to this contract.

    In this case, select Broker.

    You can refer to the image following this table as an example to understand better.

    Select Account

    Select the required broker account.

    Note:

    This field provides you a list of all the Accounts that have the Broker flag set to true.

    As soon as you select a broker account, the system displays the Select Commission Plan field.

    Select Contact

    Select the required contact.

    This is an optional step to select.

    Select Commission Plan

    This field gets displayed only once you select a broker account.

    Select the required commission plan that you want to use for the selected broker account.

    Upon selecting a commission plan, the system displays a list of Commission Items associated with that Commission Plan.

    Note:

    • If two or more Commission Items have the same Commission Type and Commission Method, the system only considers the Commission Item with the most recent Start Date.

    • Each broker account may have a default commission plan selected.

      On the Contract Party page, when you select a broker account, and if that broker account has a default commission plan attached to it, then that default commission plan with its commission items get displayed automatically.

      However, if the broker account does not have a default commission plan, then you can select the commission plan from the list of all the commission plans available.

      You may attach a default commission plan while creating a broker account or while editing an existing broker account.

      Note:

      For more information on creating a broker account with a default commission plan, see the Create a broker account section of the Broker Commission page.

    Variance

    In the Commission Items section, enter the variance.

    This field is used to set positive or negative variance required at the contract level for commission items.

    The value entered in this field is either considered as a percentage or a flat number depending on the Commission Method selected. If the Commission Method selected is percentage, then the value in this field is considered as a percentage. Otherwise, the value is considered as a flat amount.

    The following image displays a list of party types available to select from:

    The following image illustrates the Contract Party page with the details:

    Note:

    If the contract has already been disbursed, you cannot then add the broken commission items and the system displays the following error message:

    Contract has already been disbursed, commission can not be added.

Broker commission is now set up for the required loan contract.

Override the standard page for adding a Contract Party

Note:

This step is to be followed as part of the upgrade to December 2023 release. If these steps are not already followed during upgrade to December 2023, then you must perform these steps before you add a broker account as a Contract Party to the contract in the preceding Step 4: Add the broker to the contract and select the Commission Plan and Variance.

For information on the upgrade steps, see the release-related steps in the Q2 Product Upgrade Guide.

You must perform this step to see the correct contents of the page after selecting the New button to add a broker as a Contract Party.

Steps

  1. Go to Setup > Setup.

  2. On the Setup page, go to Object Manager > Contract Party > Buttons, Links, and Actions.

  3. On the Buttons, Links, and Actions page, from the dropdown list of New, select Edit .

  4. On the New page, in the Override Properties section, for the Salesforce Classic Override property, select Visualforce page, and then from the dropdown list, select CommissionContractPartyPage [CommissionContractPartyPage].

  5. Select Save.

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